Flagged this one up on another board thread the other day and said it was one to watch very carefully. It more or less as a momnopoly position within the growing IPTV market. It has a good management, is moving into a profit making company , now has positive cash flow and has around 13 million cash in the bank, enjoys margins of around 80% yes 80% and works with some of the biggest Tech companys on the planet.

Contracts should be announced very soon which should lead to a pushing of the price upwards. The spread is an off puter but you can normally deal within side it. Citywire have tipped this one so I will post their findings below.

DYOR

Orca could be a whale of an opportunity

By: Joanne Wallen, Associate Editor Citywire 3/02/2005



Orca Interactive is off to a good start as a separate company having spun off from Emblaze in October and with the might of HP and now IBM behind it, Orca should be a force to be reckoned with.

Shares (ORCA) in the AIM-listed company are unchanged at 126.5p today, well above the 93p flotation price and valuing the business at 43.2 million.

The Israel-based company, which states its earnings in US dollars, saw revenues for the year to December grow by 106% to $5.2 million while losses decreased to $1.8 million (953,000) from $4.9 million. The company had $24.5 million of cash on the balance sheet.

Orca offers a complete suite of applications to fixed line telecoms companies, enabling them to offer television services over their telephone networks (IPTV). The software covers everything from the user interface (every click on a remote control), to integration with a telcos back-end billing and customer interface systems.

IPTV is just starting to take off as telecoms operators upgrade their networks to IP (internet protocol) or data networks. The telcos, losing out from declining voice revenues and competition from the cable operators, are now looking to offer services such as video on demand and full broadcast television over their networks.

Orca has already announced relationships with Hewlett-Packard, Lucent, Nortel, Nokia and Siemens, and today added IBM to the list. These companies will resell its software and act as systems integrators.

Chief executive Haggai Barel told Citywire he expected to be able to announce deals with these partners very soon. At present, Orca still has to provide a considerable amount of professional services to customers, but in the longer term Barel hopes that its partners will provide all of this and Orca will revert to being a pure software players, with margins to match. Gross margins are already nearly 80%.

The companys main competition comes from Alcatel, which has its own software but is also looking to be the systems integrator for that software. This is likely to inhibit any of the major systems integrators from dealing with it, and leaves the rest of the market open for Orca.

Citywire Verdict:
It is clearly still early days, but Orca is in there ready for what looks like being an explosion in IPTV. Few network operators will have a choice. They will have to compete for customers television and internet business, or lose out in a big way.

The fact that the two major competing hardware manufacturers and systems integrators, IBM and HP, have chosen to work with Orca sounds like very compelling endorsement both of the technology, and of the fact that there are few viable competitors out there. Well worth a punt for those that like the risks inherent with IT stocks.

cheers GF.

Yup and its moved up nicely this morning. This one could really take off.

cheers GF.

Well its certainly flying now and all buys no sells.

cheers GF.

Hi guys ,this orca looks a live wire bought a few today . I think it will do us all a good turn ,the growth potential is tremendous.

regards bowman

Nice to have you on board bowman, onwards and upwards.

cheers GF.

Couldn't resist joining the party--hope the rise continues looks an exciting company!

Glad to have you on boarb MP. Plenty in this one, Blue sky potential.

cheers GF.

Presently the hottest stock around.

Blue Chip Customers

13.5 million Cash on the books

Margins of 80%

Big Player In The US

Moving Into Profit By The Day

Market Leader, WORLDWIDE And Virtually No Competition.

cheers GF.

hi gf, just get on the boat on 10th and so happy to see the gain, thanks so much! I believe there would be long way to go UPWARD! btw, I still have a "very little" cash left, and have made my "study" on CBF, DGM, MMG and SEA, can make my decision, any further advise? thanks!

swseun, MMG out of that list AT THE MOMENT stands out.

cheers GF.

A tree shake going on at present and an ample opportunity to pick more up on the cheap. I have added myself.

cheers GF.

Cant beleive the price drop today. Buys far higher than sells and they drop the price 5p, lunacy. Buy now if you want to get them on the cheap.

cheers GF.

Hows that work GF? 300,000+ buys and 30,000+ sells = a price drop?

Looks to me like they need stock to fill orders and are trying to frighten weak holders out. Hang onto them. They may change tactics and bang the price up by a big margin and then try to get profit taking.

cheers GF.

thanks gf

The MMs owe me on this one aswell tomorrow after the games they have played today with the share price, it was a disgrace.

cheers GF. Im off for a pint to calm down. CHEERS.

Damn right GF!

Ill be around to see them if they dont put it up tomorrow. LOL.

cheers GF.

Like any help tomorrow GF

He He. Lets hope for a better day.

cheers GF.

From Citywire this morning................


From todays CityWire.................

James Barstow, the highly regarded manager of the Aurora investment trust (ARR), has added to his fund's holding in Israeli internet protocol (IP) specialist Orca Interactive (ORCA).


cheers GF.